Axcelis' (ACLS) Purion Solution Continues to Witness Traction
Axcelis Technologies, Inc ACLS recently announced that it shipped numerous shipments of Purion M SiC medium current implanter to China-based power device chipmakers in the current quarter.
The solution will be utilized for 150mm production of silicon carbide power devices for backing up industrial, energy, automotive and other power intensive applications.
The Purion M SiC solution provides users with an implanter which has a wide dose and energy range. This makes it highly suitable for early phases of a fab production ramp.
Axcelis Technologies, Inc. Price and Consensus
Axcelis Technologies, Inc. price-consensus-chart | Axcelis Technologies, Inc. Quote
Prior to the current shipments, ACLS had shipped Purion H SiC Power Series and the Purion M SiC Power Series ion implanter systems to power device chipmakers in Asia and Europe. It also had shipped Purion XE high energy and Purion H high current implanters to various fabs in Korea and China for manufacturing of DRAM memory devices in December 2023. The shipments also included a follow-on shipment to an existing customer in Korea.
Axcelis is a leading producer of ion implantation equipment used in the fabrication of semiconductors.
The top-line performance is being driven by robust customer demand for Purion suite of products, especially in the silicon-carbide power market. The silicon-carbide power device market is being driven by transition to electric vehicles.
This, in turn, is boosting demand for Purion products, especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool.
Purion H200 and Purion XE silicon carbide systems are witnessing strong uptake. This is because customers with new fab projects initially set up a core of Purion M silicon carbide tool. Then, they deploy Purion H200 silicon carbide and Purion XE silicon carbide systems to augment productivity and cost efficiency, highlighted management.
In 2023, the company reported revenues of $1.13 billion, up 23% year over year driven by strong adoption of Purion products. System revenues increased 28% year over year to $883.6 million in 2023. China continues to be a key market, with a contribution of 46% to total system revenues in 2023.
ACLS expects momentum in the power segment to help it achieve the targeted $1.3 billion in revenues in 2025. For 2024, revenues are expected to be similar to 2023 levels with higher revenues expected in the second half.
However, softness in the general mature and memory markets remains concerning. Amid volatile macroeconomic backdrop, increasing expenses toward research and development, and infrastructure are likely to be additional headwinds.
ACLS currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 14% in the past year against 29.1% growth of the sub-industry.
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